UK-based energy supermajor Shell has decided to bail on the MarramWind and CampionWind floating wind projects off the coast of Scotland.
The decision follows a strategic review and is aligned with the company’s general direction of moving away from renewables and back to fossil fuels following the arrival of CEO Wael Sawan.
Namely, Shell sold its 50% interest in the 3GW MarramWind to ScottishPower Renewables, a subsidiary of Spanish developer Iberdrola, and returned the 2GW CampionWind lease to Crown Estate Scotland, a public corporation responsible for managing property in Scotland owned by the monarch.
This was also partially influenced by Reform UK and the Conservatives in the UK, which pushed back against renewables and net-zero investment.
This is a great hit to the sector as the proposed CampionWind development was supposed to bring in almost £3.2bn ($4.2bn) of investment to Scotland, with another £950m ($1.25bn) pledged across the rest of the UK. An extra £3.7bn ($4.86bn) of investment was expected to come from overseas for the project.
According to a statement by Crown Estate Scotland, all options will be assessed for the CampionWind site “in line with market demand and best value for Scotland”.
The hit was much smaller with the MarramWind project, as ScottishPower Renewables said it would continue the development of the project. If successfully developed, it could power the equivalent of more than 3.5m homes.
“Amidst fierce headwinds, some attrition is not wholly unexpected as developers with different priorities respond to commercial pressures. However, Scotland continues to have a globally attractive offshore wind pipeline which will underpin our energy security and economic prosperity,” said Colin Palmer, director of offshore at Scottish Renewables.
The move by Shell comes after Danish energy giant Ørsted withdrew from the Hornsea 4 project in England in May, revealing increased supply chain costs, interest rates, and risk to construct and operate offshore wind projects.
